Mumbai: The Heavy Industries Ministry is working on a plan to allocate Rs 225 crore during the 12th Plan period to set up a centre of excellence for skill development, a senior ministry official said here today.

"We will be proposing to allocate around Rs 225 crore during the 12th Plan for setting up a centre of excellence for skill development," Heavy Industries Secretary MF Farooqui told reporters on the sidelines of ICEMA-CII event here.

He said the government is working with the Indian Construction Equipment Manufacturers Association (ICEMA) to establish a centre that will help in providing skilled manpower, which is one of the areas of concern for the infrastructure and construction industries.

"We also want the industry to help us in widening the scope of skill development across the country," he added.

Farooqui said since construction industry plays a vital role in economic growth, there is a need to increase private participation in this.

He further said the government is looking to increase the industry which is around Rs 10,000 crore in size, to a compounded annual growth rate of around Rs 35,000 crore by the second part of the current Plan.

"To do this, there is a need to create a development council that will bring government and private players together and lead the voice of the industry and government into the creation of policy," he added.